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Issue 3- sports (The money cycle; so many support systems- increasing had…
Issue 3- sports
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The money cycle
Advertisers pay huge fees to television networks to get their messages to their target audiences- niche ( young male)
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The major professional sports leagues are all very profitable, although there were times they claim to be losing money- but this wasn’t necesarally true. An example: the NFL controls all television rights to its games and distributes that money equally among all teams, so the teams in the smaller markets can be competitive- if they only got their money from local revenue they could not afford good players
In other professional sports they allow teams to negotiate their own television contracts and keep the money
Salaries of players have risen due to television- Because its benefical in the long run 1) help the team win 2) brings fans to the stadium
The public has always been interested in sports. But for the money cycle to grow, the number of fans has to grow each year, fans need to grow to spend more time watching the games, going to the stadium and supporting the advertising
The money cycle has increased expenditures on sports over the years- more than $485 billion is spent on sports- forces on the top 4 american professional sports- football, baseball, basketball and hockey- 11.8% is spent on watching sports and the other 88.2% is buying sporting goods, joining recreational centers and leagues etc.
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Olympics One area of sports that has rapidly declined over the past 20-30 years. Happens every 4 years- Can’t make the money back. Networks had to play to show the Olympics. NBC never makes a profit. Costs over a billion dollars to bear the rights to air them. Prestige factor to host the Olympics. It is good for advertising
video games It is very popular- more than ⅔ of the household play video games. Some colleges are making video games in competitive sports - there are scholarship even for it
Sports have changed dramatically over the past four decades- the reason is MONEY
Delineating the issue- has money made sports better or ruined it? Some believe everyone should be equal and other believe talented people should be rewarded- we let the economic marketplace determine that
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